Sometimes, it might be unclear how a tax law applies to a particular transaction or circumstance, for example, when determining the deductibility of an expense or changeability of an item of income in an entity’s income tax filings when the applicable tax law is unclear. The acceptability of the tax treatment might not be known until the relevant taxation authority or a court decides in the future. As a result, the uncertainty of tax treatment might affect the entity’s accounting for a current or deferred tax asset or liability.
As a result, the Malaysian Accounting Standards Board (MASB) has issued IC Interpretation 23 to help entities in determining the accounting tax position when there is uncertainty over income tax treatments.
One of our member firms, Crowe LLP, has published an article on the implementation of IFRIC 23 (equivalent to IC Interpretation 23 in Malaysia).
To view the original article, click here.